The Mortgage Market Today

Several years after the mortgage lending bubble burst, low-income borrowers are facing new problems. New federal and state regulations and the collapse of the Wall Street secondary market have been effective at eliminating toxic mortgage loans from the marketplace, but have also created new difficulties for low-income households seeking to buy or refinance a home. Most lenders have stopped making loans to borrowers who do not fit extremely rigid underwriting parameters, making it so even well- qualified low-income and minority households are often barred from purchasing a home.

Some lenders, however, including non-profits and some community institutions, continue to find ways to reach low-income households with high-quality mortgage loans designed to keep borrowers in their homes over the long term. These institutions continue to sell their loans on the existing government backed secondary market – a strong indication of the success of this approach. If the practices used by these lenders were adopted more broadly, the opportunities for expanding low- income homeownership in a sustainable fashion would be greatly enhanced.


See What FMC is doing to Support Affordable Low Income
Mortgage Options and Sustainable Low Income Homeownership
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  1. State HFAs: Achievements and Opportunities in Affordable Homeownership.
    A Primer on Best Practices in Manufactured Housing Lending from the I’M HOME data project.
  2. Toward a Sustainable and Responsible Expansion of Affordable Mortgages for Manufactured Homes.
    A Report from the I’M HOME Loan Data Collection Project.
  3. Real Homes, Real Value
    FMC's study of the challenges involved in appraising manufactured housing. Download*
  4. Can Non-profit Mortgage Lenders Compete on Price?
    A Report on the Mortgage Lending Activities of The Federation of Appalachian Housing Enterprises (FAHE). Download*

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